Here is a statement that was made this week by David Smith from Dreweatt Neate estate agents:"We firmly believe that now and the next six months are the trough for house prices"
I have a slight feeling however that this is wishful thinking, as around the same time HBOS group's housing economist Martin Ellis acknowledged that house prices were likely to continue falling in 2009. In a statement he added"While market activity remains at very low levels, there are some tentative signs that activity may be beginning to stabilise. The house price to earnings ratio - a key measure of housing affordability - has fallen to its lowest level for six years"
In summary, although mortgages are becoming cheaper following a string of interest rate cuts, (UK interest rates lowered to 0.5% today! Source: BBC), the demand for a high deposit and fears over job security are stumping the market despite this apparent 'affordability'.
This all builds on my previous thoughts that now is the perfect time to hop on the property ladder if you have a stable job and can knock together a big deposit.
No comments:
Post a Comment